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Domino's Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and gluten-free. The
Domino's Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and gluten-free. The firm expects that sales of the new pizza will be $ 28 million per year. While many of these sales will be to new customers, Domino's Pizza estimates that 33.0% will come from customers who switch to the new, healthier pizza instead of buying their original, unhealthy version. (a) Assume customers will spend the same amount on either version. The incremental sales associated with introducing the new pizza will be $ million. (Round your answer to two decimal places) (b) Suppose that 46.0% of the customers who will switch from Domino's Pizza's original pizza to its healthier pizza will switch to another brand if Domino's Pizza does not introduce a healthier pizza, then the incremental sales associated with introducing the new pizza in this case will be $ million. (Round your answer to two decimal places)
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